CFRE Donor Relations and Stewardship 2 — Questions and Answers
Question 1: A donor recognition society is BEST described as:
- A peer-to-peer fundraising team
- A tiered program that publicly acknowledges donors at various giving levels (Correct answer)
- A committee that reviews gift restrictions
- An IRS-mandated donor disclosure program
Correct answer: A tiered program that publicly acknowledges donors at various giving levels
A donor recognition society groups donors by giving level and offers benefits and acknowledgment appropriate to each tier.
Question 2: Which metric is most useful for measuring donor stewardship effectiveness?
- Total number of social media followers
- Donor retention rate year over year (Correct answer)
- Number of grant applications submitted
- Average cost per event attendee
Correct answer: Donor retention rate year over year
Donor retention rate directly measures how successfully an organization stewards and retains its donors from one year to the next.
Question 3: An organization receives a restricted gift for a specific program that has since been discontinued. What is the appropriate first step?
- Use the funds for the general operating budget
- Contact the donor to discuss redirecting the gift with their approval (Correct answer)
- Return the gift immediately without discussion
- Quietly transfer funds to a similar program
Correct answer: Contact the donor to discuss redirecting the gift with their approval
Ethical stewardship requires contacting the donor to obtain their approval before redirecting a restricted gift to an alternative purpose.
Question 4: What is a 'naming opportunity' in major gift fundraising?
- A chance to rename the organization
- The practice of listing all donors in an annual report
- An opportunity to name a building, room, or program in honor of a donor in exchange for a significant gift (Correct answer)
- A strategy for anonymous giving
Correct answer: An opportunity to name a building, room, or program in honor of a donor in exchange for a significant gift
Naming opportunities recognize major donors by associating their name with a physical space, endowment, or program in exchange for a leadership-level gift.
Question 5: Which approach best supports upgrading annual fund donors to major gift prospects?
- Sending more direct mail appeals
- Implementing a mid-level giving program with personal outreach and stewardship (Correct answer)
- Reducing contact frequency to avoid annoying donors
- Requiring donors to attend an event before upgrading
Correct answer: Implementing a mid-level giving program with personal outreach and stewardship
Mid-level giving programs provide a bridge between annual fund and major gifts, using personalized stewardship to identify and cultivate upgrade candidates.
Question 6: In stewardship, what is the purpose of a 'gift impact report'?
- To request a renewal gift
- To document compliance with IRS regulations
- To show donors the tangible outcomes their contribution achieved (Correct answer)
- To track internal fundraising staff performance
Correct answer: To show donors the tangible outcomes their contribution achieved
A gift impact report demonstrates to donors exactly how their funds were used and what outcomes resulted, reinforcing the value of their philanthropic investment.
CFRE Donor Relations and Stewardship 2
A donor recognition society is BEST described as: